Wall Street cuts losses on Boehner "fiscal cliff" comment

NEW YORK (Reuters) - Stocks sharply pared losses on Wednesday after U.S. House Speaker John Boehner said he was optimistic that a deal on the "fiscal cliff" to avert large tax hikes and spending cuts could be reached.


After falling nearly 1 percent, the S&P 500 pared losses to trade near flat after Boehner said that Republicans were willing to put revenues on the table if Democrats agreed to spending cuts.


For weeks now, the market has been swinging back and forth on headlines out of Washington regarding the ongoing U.S. budget talks.


Later in the day, President Barack Obama will meet at the White House with chief executives from top corporations including Goldman Sachs , Deloitte LLP, and Caterpillar Inc , to discuss U.S. fiscal problems.


"While there's little that the president and vice president could do at today's meeting to improve moods in America's corner office, we still believe a legislative compromise will be reached before 'fiscal cliff' detonates," said Jack Ablin, chief investment officer at BMO Private Bank.


"In the meantime, we expect daunting headlines and emotional market volatility."


One possible result of the deficit reduction talks is a rise in the tax rate on dividends, prompting some firms to issue special dividends or move up plans for dividends.


The latest example is retailer Costco Wholesale Corp , which said it will pay a special $3 billion dividend to investors. The company posted monthly same-store sales that beat forecasts. The stock rose 4.7 percent to $101.07.


The Dow Jones industrial average <.dji> was up 3.38 points, or 0.03 percent, at 12,881.51. The Standard & Poor's 500 Index <.spx> was down 1.73 points, or 0.12 percent, at 1,397.21. The Nasdaq Composite Index <.ixic> was down 5.10 points, or 0.17 percent, at 2,962.69.


Earlier, the S&P 500 fell nearly 1 percent on data that showed U.S. single-family home sales fell in October, casting a shadow over what has been one of the brighter spots in the U.S. economy.


Knight Capital Group Inc shares jumped 10 percent to $3.27 on news that Getco LLC has sent a proposal for a merger between Getco and Knight Capital at a price of $3.50 per share, according to a regulatory filing.


On the downside, Apple Inc shares fell 1.3 percent to $576.80, weighing heavily on the overall market.


(Reporting By Angela Moon; Editing by Kenneth Barry)


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Protesters Gather Again in Cairo Streets to Denounce Morsi





CAIRO — Thousands of people flowed into the streets of Cairo, the Egyptian capital, Tuesday afternoon for a day of protest against President Mohamed Morsi’s attempt to assert broad new powers for the duration of the country’s political transition, dismissing his efforts just the night before to reaffirm his deference to Egyptian law and courts.




By early Tuesday afternoon in Cairo, a dense crowd of hundreds had gathered outside the headquarters of a trade group for lawyers, and thousands more had filed in around a small tent city in Tahrir Square. In an echo of the chants against Hosni Mubarak, Egyptian’s ousted president, almost two years ago, they shouted, “Leave, leave!” and “Bring down the regime!” They also denounced the spiritual leader of the Muslim Brotherhood, the Islamist group allied with Mr. Morsi.


A few blocks away, in a square near the American Embassy and the Interior Ministry headquarters, groups of young men resumed a running battle that began nine days ago, throwing rocks and tear gas canisters at riot police officers. Although those clashes grew out of anger over the deaths of dozens of protesters in similar clashes one year ago, many of the combatants have happily adopted the banner of protest against Mr. Morsi as well.


Egyptian television had captured the growing polarization of the country on Monday in split-screen coverage of two simultaneous funerals, each for a teenage boy killed in clashes set off by disputes over the new president’s powers. Thousands of supporters of Mr. Morsi and his allies in the Muslim Brotherhood marched through the streets of the Nile Delta city of Damanhour to bury a 15-year-old killed outside a Brotherhood office during an attack by protesters. And in Tahrir Square here in Cairo, thousands gathered to bury a 16-year-old killed in clashes with riot police officers and to chant slogans blaming Mr. Morsi for his death. “Morsi killed him,” the boy’s father said in a video statement circulated over the Internet.


“Now blood has been spilled by political factions, so this is not going to go away,” said Rabab el-Mahdi, a professor at the American University in Cairo and a left-leaning activist, adding that these were the first deaths rival factions had blamed on each other and not on the security forces of the Mubarak government since the uprising began last year. Still larger crowds were expected in the evening, as marchers from around the city headed for the square. Many schools and other businesses had closed in anticipation of bedlam, and on Monday, the Brotherhood called off a rival demonstration in support of the president, saying it wanted to avoid violence.


Egypt’s Supreme Judicial Council met again on Tuesday to consider its response to the president, and the leader of Al Azhar, a center of Sunni Muslim learning that is regarded as the pre-eminent moral authority here, met with groups of political leaders in an effort to resolve the battle over the president’s decree and the deadlock in the constitutional assembly, which is trying to draw up a new constitution.


But even as Mr. Morsi met with top judges Monday night in an effort to resolve the crisis, a coalition of opposition leaders held a news conference to declare that preserving the role of the courts was only the first step in a broader campaign against what Abdel Haleem Qandeil, a liberal intellectual, called “the miserable failure of the rule of the Muslim Brothers.” Mr. Morsi “unilaterally broke the contract with the people,” he declared. “We have to be ready to stand up to this group, protest to protest, square to square, and to confront the bullying.”


Mr. Morsi’s effort to remove the last check on his power over the political transition had brought the country’s fractious opposition groups together for the first time in a united front against the Brotherhood. But the show of unity papered over deep divisions between groups and even within them, said Ms. Mahdi of the American University.


“This is not a united front, and I am inside it,” she said. “Every single political group in the country is now divided over this — is this decree revolutionary justice or building a new dictatorship? Should we align ourselves with folool” — the colloquial term for the remnants of the old political elite — “or should we be revolutionary purists? Is it a conflict between the Muslim Brotherhood and the pro-Mubarak judiciary, or is this the beginning of a fascist regime in the making?”


Mayy El Sheikh contributed reporting.



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Miranda Kerr Strips Down for the Victoria’s Secret Fashion Show







Style News Now





11/27/2012 at 09:00 AM ET











Miranda Kerr Victoria's Secret Show Courtesy Victoria’s Secret


Just because Miranda Kerr didn’t wear the $2.5 million Victoria’s Secret ‘Fantasy Bra’ in the brand’s fashion show this year doesn’t mean she didn’t get nervous before walking the runway.


“I think there is just as much pressure if you’re wearing it or not because you’re in underwear in front of millions of people,” Kerr tells PEOPLE. “I try to enjoy it and have fun.”


PEOPLE got its hands on an exclusive backstage photo of Kerr getting ready to stun at the VS fashion show in a super-sexy white-and-black ensemble (above). And though the supermodel might make looking that hot look effortless, it obviously takes work, she admits.



“I’ve amped up my training,” she shares. “[I've been] doing a lot of Pilates, yoga, boxing and working my core, butt and legs. I also drink healthy green juices everyday, and protein shakes.”


But memories of the tough training somehow fade away when Kerr hits the catwalk — this year alongside superstars Rihanna, Justin Bieber and Bruno Mars.  ”I love feeling the music when I come down the runway,” she shares. “The energy is incredible.”


Catch Kerr and the rest of the Victoria’s Secret Angels in action when the show airs Tuesday, Dec. 4 on CBS. Tell us: Will you be tuning in to the Victoria’s Secret Fashion Show?


–Jennifer Cress


PHOTOS: SEE MORE GORGEOUS WOMEN IN ‘LAST NIGHT’S LOOK’




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Market opens down on "fiscal cliff" caution

NEW YORK (Reuters) - U.S. stocks fell on Tuesday as worries over the impact of "fiscal cliff" on the economy overshadowed progress in easing Greece's debt burden and a slew of positive U.S. economic data.


A deal in Europe to release emergency aid to debt-laden Greece gave a brief, early lift to stocks, but the news was not enough to sustain the gains as investors confronted the looming "fiscal cliff" at home.


As Democrats and Republicans prepared to resume efforts to bridge their sharp differences over taming the federal debt this week in Washington, the market resumed its cautious mode.


"It's like there is nothing else but the fiscal cliff now. It is too big of an issue both economically and politically for investors to just brush off," said Jack DeGan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.


The market's worry is whether Congress and the White House can agree on ways to avoid some $600 billion in automatic spending cuts and tax increases that are due to kick early next year. Some fear dramatic fiscal restraint could send the economy into recession.


"It's hard for markets to move on fundamentals now. Even if they do, they quickly come back to being cautious. Investors may buy on small dips but they don't stay in that position for long," DeGan said.


Market reaction was muted to data that showed Americans' confidence in November hit the highest level in more than four years and home prices in September rose for an eighth straight month.


In addition, a gauge of planned U.S. business spending increased by the most in five months in October, data on durable goods orders showed.


The Dow Jones industrial average <.dji> was down 37.35 points, or 0.29 percent, at 12,930.02. The Standard & Poor's 500 Index <.spx> was down 2.75 points, or 0.20 percent, at 1,403.54. The Nasdaq Composite Index <.ixic> was down 4.21 points, or 0.14 percent, at 2,972.58.


As of Monday's close, the S&P 500 was holding above the 1,400, the level it reclaimed last week. But volume continued to be weak as traders awaited any progress to avert the fiscal restraint. Last week, the S&P 500 advanced nearly 4 percent.


Among individual stocks, Corning Inc shares rose 6.3 percent to $12.07 after the specialty glass maker said it expects full-year sales of its Gorilla glass, used in smartphones and tablets, to approach $1 billion.


McMoRan Exploration Co shares tumbled 22 percent to $7.55 after the oil and gas explorer said on Monday that it could not achieve a measurable flow test at its key Davy Jones No. 1 well in the Gulf of Mexico.


(Reporting By Angela Moon; Editing by Theodore d'Afflisio and Kenneth Barry)


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As Rebels Gain, Congo Again Slips Into Chaos





GOMA, Democratic Republic of Congo — The lights are out in most of Goma. There is little water. The prison is an empty, garbage-strewn wasteland with its rusty front gate swinging wide open and a three-foot hole punched through the back wall, letting loose 1,200 killers, rapists, rogue soldiers and other criminals.




Now, rebel fighters are going house to house arresting people, many of whom have not been seen again by their families.


“You say the littlest thing and they disappear you,” said an unemployed man named Luke.


In the past week, the rebels have been unstoppable, steamrolling through one town after another, seizing this provincial capital, and eviscerating a dysfunctional Congolese Army whose drunken soldiers stumble around with rocket-propelled grenades and whose chief of staff was suspended for selling crates of ammunition to elephant poachers.


Riots are exploding across the country — in Bukavu, Butembo, Bunia, Kisangani and Kinshasa, the capital, a thousand miles away. Mobs are pouring into streets, burning down government buildings and demanding the ouster of Congo’s weak and widely despised president, Joseph Kabila.


Once again, chaos is courting Congo. And one pressing question is, why — after all the billions of dollars spent on peacekeepers, the recent legislation passed on Capitol Hill to cut the link between the illicit mineral trade and insurrection, and all the aid money and diplomatic capital — is this vast nation in the heart of Africa descending to where it was more than 10 years ago when foreign armies and marauding rebels carved it into fiefs?


“We haven’t really touched the root cause,” said Aloys Tegera, a director for the Pole Institute, a research institute in Goma.


He said Congo’s chronic instability is rooted in very local tensions over land, power and identity, especially along the Rwandan and Ugandan borders. “But no one wants to touch this because it’s too complicated,” he added.


The most realistic solution, said another Congo analyst, is not a formal peace process driven by diplomats but “a peace among all the dons, like Don Corleone imposed in New York.”


Congo’s problems have been festering for years, wounds that never quite scabbed over.


But last week there was new urgency after hundreds of rebel fighters, wearing rubber swamp boots and with belt-fed machine guns slung across their backs, marched into Goma, the capital of North Kivu Province and one of the country’s most important cities.


The rebels, called the M23, are a heavily armed paradox. On one hand, they are ruthless. Human rights groups have documented how they have slaughtered civilians, pulling confused villagers out of their huts in the middle of the night and shooting them in the head.


On the other hand, the M23 are able administrators — seemingly far better than the Congolese government, evidenced by a visit in recent days to their stronghold, Rutshuru, a small town about 45 miles from Goma.


In Rutshuru, there are none of those ubiquitous plastic bags twisted in the trees, like in so many other parts of Congo. The gravel roads have been swept clean and the government offices are spotless. Hand-painted signs read: “M23 Stop Corruption.” The rebels even have green thumbs, planting thousands of trees in recent months to fight soil erosion.


“We are not a rebellion,” said Benjamin Mbonimpa, an electrical engineer, a bush fighter and now a top rebel administrator. “We are a revolution.”


Their aims, he said, were to overthrow the government and set up a more equitable, decentralized political system. This is why the rebels have balked at negotiating with Mr. Kabila, though this weekend several rebels said that the pressure was increasing on them to compromise, especially coming from Western countries.


On Sunday, rebel forces and government troops were still squared off, just a few miles apart, down the road from Goma.


The M23 rebels are widely believed to be covertly supported by Rwanda, which has a long history of meddling in Congo, its neighbor blessed with gold, diamonds and other glittering mineral riches. The Rwandan government strenuously denies supplying weapons to the M23 or trying to annex eastern Congo. Rwanda has often denied any clandestine involvement in this country, only to have the denials later exposed as lies.


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Olivier Martinez Shows Off Swollen Hand Post-Holiday Brawl















11/26/2012 at 11:50 AM EST



Looking a little swollen, Olivier.

Seen for the first time since his much-reported on Thanksgiving Day brawl, French actor Olivier Martinez holds up a badly swollen right hand as he runs errands Saturday in Los Angeles.

Martinez, 46, reportedly punched fiancĂ©e Halle Berry's ex-boyfriend Gabriel Aubry during a holiday hand-off of the former couple's daughter, Nahla, 4½. Meanwhile, 37-year-old Aubry, who was arrested after the exchange, was also spotted out in L.A. – sporting a much more swollen and bruised left eye.

Seems that despite being a few inches shorter than Aubry, Martinez, whose father was a professional boxer, was able to channel his pre-actor days when he also fought competitively.

Aubry, a Canadian model, is expected on court on Dec. 13 on charges of misdemeanor battery. Immediately following the fight, Berry, Martinez and Nahla were all granted an emergency protective order requiring Aubry to stay 100 yards away from them.

Earlier this month, a court denied Berry, 46, the right to relocate to France with her daughter.

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Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

___

Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Wall Street falls on caution after rally

NEW YORK (Reuters) - Stocks eased on Monday after a rebound rally pushed the S&P 500 to its best week in more than five months last week and as investors focused on talks to release aid to Greece and negotiations in Washington to avoid the U.S. "fiscal cliff."


Major indexes ended last week with gains of 3 percent to 4 percent, recovering some of their losses following an 8 percent correction since September. The Dow and S&P 500 both closed above key technical levels for the first time since November 6, which could provide additional support. The Dow ended above 13,000, while the S&P broke above 1,400.


Investors continued to chew over two of the greatest overhangs for markets. Euro zone finance ministers and the IMF will seek to unfreeze the second bailout package for Greece on Monday. At the same time, U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the harsh tax increases and government spending cuts.


"Friday was a big day in the stock market," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York. "So it's not surprising at all to see some profit-taking on that."


Knight Capital Group Inc is in talks about possibly selling its market-making operation, its largest and most profitable business, but it is not known if a deal will happen, sources familiar with the matter said on Saturday. The stock jumped 10 percent to $2.74.


The Dow Jones industrial average <.dji> dropped 102.43 points, or 0.79 percent, to 12,907.25. The Standard & Poor's 500 Index <.spx> lost 10.42 points, or 0.74 percent, to 1,398.73. The Nasdaq Composite Index <.ixic> fell 12.31 points, or 0.41 percent, to 2,954.54.


Qatar has cashed in its remaining warrants in Britain's Barclays Plc , a move that should yield a $280 million profit. The warrants have not yet been converted, but conversion would dilute the holding of shares by other investors. U.S.-listed shares of Barclays fell 6.4 percent to $15.24.


Apple Inc has asked a federal court to add six more products to its patent infringement lawsuit against Samsung Electronics Co , including the Samsung Galaxy Note II, in the latest move in an ongoing legal war between the two companies. Apple shares were up 1.1 percent at $577.86.


While holiday shopping appeared to be off to a good start, analysts cautioned against reading too much into one weekend's numbers. Retailers have to sustain the initial burst through the November-December holiday season, which can account for a third of annual sales and 40 to 50 percent of profits for the year.


Shares in department store Macy's Inc , which offered consumers deep discounts on Black Friday, fell 3.5 percent to $40.27. The SPDR S&P retail exchange traded fund fell 1.6 percent to $62.23.


Total spending for the long weekend rose to $59.1 billion, up 12.8 percent from last year, according to the National Retail Federation. That was down from the prior year's 16.4 percent increase.


Black Friday's online sales topped $1 billion for the first time ever as more consumers used the Internet do their early holiday shopping, comScore Inc said on Sunday.


(Additional reporting By Gabriel Debenedetti; Editing by Kenneth Barry)


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Bangladesh Fire Kills More Than 100 and Injures Many





MUMBAI — More than 100 people died Saturday and Sunday in a fire at a garment factory outside Dhaka, Bangladesh, in one of the worst industrial tragedies in that country.




It took firefighters all night to put out the blaze at the factory, Tazreen Fashions, after it started Saturday around 7 p.m., a retired fire official said by telephone from Dhaka, Bangladesh’s capital. At least 111 people were killed and scores of workers were taken to hospitals with burns and smoke inhalation injuries.


“The main difficulty was to put out the fire; the sufficient approach road was not there,” said the retired official, Salim Nawaj Bhuiyan, who now runs a fire safety company in Dhaka. “The fire service had to take great trouble to approach the factory.”


Bangladesh’s garment industry, the second largest exporter of clothing after China, has a notoriously poor record of fire safety. Since 2006, more than 500 Bangladeshi workers have died in garment factory fires, according to Clean Clothes Campaign, an anti-sweatshop advocacy group based in Amsterdam. Experts say many of the fires could have been easily avoided if the factories had taken the right precautions. Many factories are in cramped neighborhoods, have too few fire escapes and widely flout safety measures. The industry employs more than three million workers in Bangladesh, mostly women.


Activists say that global clothing brands like Wal-Mart, Tommy Hilfiger and the Gap need to take responsibility for working conditions in Bangladeshi factories that produce the clothes that they sell.


“These brands have known for years that many of the factories they choose to work with are death traps,” Ineke Zeldenrust, the international coordinator for Clean Clothes Campaign, said in a statement. “Their failure to take action amounts to criminal negligence.”


The fire at the Tazreen factory in Savar, northwest of Dhaka, started in a warehouse on the ground floor used to store yarn and quickly spread up the building, which was nine stories high with the top three floors under construction, according to an garment industry official at the scene who asked not to be named because he was not authorized to speak to the media. Though most workers had left for the day when the fire started, the industry official said as many as 600 workers were still inside, working overtime.


The factory, which started operations in May 2010, employed about 1,500 workers and had sales of $35 million a year, according to a document on the company’s Web site. It made T-shirts, polo shirts and fleece jackets.


Most of the workers who died were on the first and second floors and were killed, fire officials said, because there were not enough exits for them to get out and none that opened to the outside.


“The factory had three staircases, and all of them were down through the ground floor,” said Maj. Mohammad Mahbub, the operations director for the fire department, according to The Associated Press. “So the workers could not come out when the fire engulfed the building.”


In a telephone interview later on Sunday, Major Mahbub said the fire could have been caused by an electrical fault or by a spark from a cigarette.


In a brief phone call, Delowar Hossain, the managing director of the Tuba Group, the parent company of Tarzeen Fashions, said he was too busy to comment. “Pray for me,” he said and then hung up.


Television news reports showed badly burned bodies lined up on the floor in what appeared to be a government building and showed the injured receiving treatment in hallways of local hospitals.


The industry official said that many of the bodies were burned beyond recognition and that it would take some time to identify them.


One survivor, Mohammad Raju, 22, who worked on the fifth floor, said he escaped by climbing out of a third-floor window onto the bamboo scaffolding that was being used by construction workers. But he said he lost his mother, who also worked on the fifth floor, when they were making their way down.


“It was crowded on the stairs as all the workers were trying to come out from the factory,” Mr. Raju said. “There was no power supply, it was dark and I lost my mother in dark. I tried to search for her for 10 to 15 minutes but did not find her.”


A document posted on Tarzeen Fashions’ Web site appeared to show that an “ethical sourcing” official for Walmart flagged “violations and/or conditions which were deemed to be high risk” at the factory in May 2011, though it did not specify the nature of the infractions. The notice said that the factory had been given an “orange” grade and that any factories given three such assessments in two years from their last audit would not receive any orders from Walmart for one year.


It was unclear whether Walmart had suspended the company or was still buying clothes from it. The Web sites of Tuba Group lists the retailer and others like Carrefour, the French retail chain, as customers. A spokesman for Walmart, Kevin Gardner, said the company was “so far unable to confirm that Tazreen is supplier to Walmart nor if the document referenced in the article is in fact from Walmart.”


Bangladesh exports about $18 billion worth of garments and is a big supplier to American, European and Japanese brands. Employees in the country’s factories are among the lowest-paid in the world with entry-level workers making a government-mandated minimum wage of about $37 a month.


Tensions have been running high between workers, who have been demanding an increase in minimum wages, and factory owners and the government. Earlier this year, a union organizer, Aminul Islam, who campaigned for better working conditions and higher wages, was found tortured and killed outside Dhaka.


Fire safety remains weak across much of the region. In September, nearly 300 workers were killed in a fire at a textile factory in Karachi, Pakistan, just weeks before it passed an inspection that covered several issues including health and safety.


Julfikar Ali Manik contributed reporting from Dhaka, Bangladesh, and Stephanie Clifford from New York.



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Saudi telco regulator suspends Mobily prepaid sim sales












(Reuters) – Saudi Arabia‘s No.2 telecom operator Etihad Etisalat Co (Mobily) has been suspended from selling pre-paid sim cards by the industry regulator, the firm said in a statement to the kingdom’s bourse on Sunday.


Mobily’s sales of pre-paid, or pay-as-you-go, sim cards will remain halted until the company “fully meets the prepaid service provisioning requirements,” the telco said in the statement.












These requirements include a September order from regulator, Communication and Information Technology Commission (CITC). This states all pre-paid sim users must enter a personal identification number when recharging their accounts and that this number must be the same as the one registered with their mobile operator when the sim card was bought, according to a statement on the CITC website.


This measure is designed to ensure customer account details are kept up to date, the CITC said.


Mobily said the financial impact of the CITC’s decision would be “insignificant”, claiming data, corporate and postpaid revenues would meet its main growth drivers.


The firm, which competes with Saudi Telecom Co (STC) and Zain Saudi, reported a 23 percent rise in third-quarter profit in October, beating forecasts.


Prepaid mobile subscriptions are typically more popular among middle and lower income groups, with telecom operators pushing customers to shift to monthly contracts that include a data allowance.


Customers on monthly, or postpaid, contracts are also less likely to switch provider, but the bulk of customers remain on pre-paid accounts.


Mobily shares were trading down 1.4 percent at 0820 GMT on the Saudi bourse.


(Reporting by Matt Smith; Editing by Dinesh Nair)


Tech News Headlines – Yahoo! News


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